products being sold from the area or used to attract customers to the area in the case of tourism.
Sector led clusters allow for the development of centres of innovation and expertise to grow in areas of specialist knowledge which can reduce costs, attract expertise and provide marketing advantage
Business clusters can also be developed to take advantage of joint purchasing opportunities or to put great product ideas in touch with the right manufacturing facility
6. Co-operation
Cluster development supports co-operation between companies, providing the ability to undertake contracts and win customers that individual companies could not do alone.
Companies may also compete with each other but there remains an overall spirit of co-operation and a recognition of the advantages of co-operation for the companies themselves and for their region.
Cooperation is a key to success in the tourism sector where all business operations contribute to the customer experience
Cooperation to promote local purchasing campaigns are features of effective local business networks
Cooperation by small producers within a sector can be effective in competing against the large companies sharing skills, reducing costs and jointly marketing their unique offer.
7. Technology and Infrastructure
The existence and use of technology such as broadband and the internet has a critical bearing on the ease with which business can be conducted in remote areas.
Local networks and purchasing are important elements in successful rural enterprise, but high speed broadband networks provide access to global markets and expertise.
The development of high quality web sites, and the capacity to maximise business value from internet development
are essential elements of business
Local business networks can use the web to promote local services and provide low cost web access to new enterprises. Communication between local businesses can be enhanced through strong virtual networks
The development of local business networks also allows businesses greater clout in campaigning for improvements to infrastructure such as broadband access or applying for community funding.
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